By Mary Ann LL. Reyes
(The Philippine Star)
Updated November 19, 2011 12:00 AM
MANILA, Philippines - Philippine Airlines (PAL) posted total comprehensive losses of $39.4 million in the second quarter of its fiscal year (July to September 2011) due mainly to skyrocketing jet fuel prices.
In a filing with the Securities and Exchange Commission (SEC), PAL said its second quarter losses was from the total comprehensive income of $26.7 million recognized in the same period in 2010.
The airline said total revenues reached $420.4 million, reflecting a 4.7 percent improvement over the year-ago figure of $401.6 million for the same three-month period.
However, total expenses went up by $84.8 million or 22.6 percent to $459.7 million for the second quarter of 2011. Jet fuel, which remains the airline’s biggest expense, contributed the largest increase at $48.3 million or 33.9 percent from $142.5 million in 2010 to $190.8 million for the current three-month period. Average jet fuel prices rose from $94.92 per barrel to $131.99 per barrel.
PAL reported that based on data released by the International Air Transport Association (IATA), the airline industry in general achieved growth in passenger traffic year-on-year as of September 2011 by an average of 6.3 percent. However, operating results in recent months are showing a decline in both passenger and cargo traffic, reflecting a reluctance for both business and leisure travel spawned by problems in the US and European economies.
Going forward, IATA reports indicate more difficult times ahead for the airline industry as various countries continue to be plagued with economic uncertainty and costs are rising with not much room to increase yields.
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